App store economics

App Store EconomicsThe do’s and don’ts

Mugunth Kumar

Thursday, 11 April, 13

About me

• Author of the iOS 5, iOS 6 Programming: Pushing the Limits book - Reached the top 100 books in Amazon’s Computer and Technology books list

• Trainer - Conducts classroom training on iOS programming at iOSTraining.sg.


Agenda

• The Mobile Eco System

• Differences between Open Web and App Store

• Designing

• Submission

• Marketing + Launching

• App Rejection

• Updates to App

• Questions


Target Audience

• Those who sell and make money from App Store

• Those who make free apps and want to get traction for their complete product through the App Store


The Mobile Eco System

• Accept the fact that the mobile eco system is locked

• iOS App Store is locked and so is Google Play

• Though you can sell apps outside of Play (and you can’t on iOS), number of downloads is far too low.

• Lamenting won’t help

• Apple is the most developer UNFRIENDLY company in the world, yet has attracted the most talented developers to work on their platform

• OTOH, Apple is the most customer friendly company


Open web vs App Store

• Open vs Locked

• Web is open.

• You can deploy anytime you want.

• App Store is not open

• You have to wait for Apple to approve.

• Plan your deployment strategies accordingly

• Approximate release dates (reviewtimes.shinydevelopment.com)

• Slightly optimistic, but still ok.


Deployment Strategies

• Deployment strategy in a locked App Store

• If your app uses a backend server

• Go live with your production server when you submit

• If your server is down or someone screws up while Apple is testing - Brrr

• Work on version 1.1 while waiting for approval


Building the App

• This is 2013. Almost 5 years after the SDK went public

• Every single app you see on App Store has a customized UI

• Hire a good designer/UX Expert

• May or may not be full-time, but still hire one.

• You can’t live without them.


Indies

• You can make an app targeting a broader audience

• You can make a niche app targeting a specific audience


Target audience for your app

• When you make an app targeting a smaller group you have the liberty to price it higher

• Apps for kids = Broad audience (High competition)

• Apps for kids with special needs = Niche audience (Low competition)

• Competition and price are inversely proportional. Higher competition means your app ends up being a commodity


Pricing - Sweet Spot

• $0.99 - $1.99

• $2.99 - $4.99

• $9.99

• $19.99

• $49.99


Pricing

• Before lowering your price, think.

• By doubling the price, will I lose half of my prospective buyers?

• If the answer is “NO”, do that.

• Because, by lowering your price, you will not automatically get twice the number of buyers

• And you will enjoy lesser support emails


Not making enough?

• I’m selling my app and I’m not making enough money

• Two things.

• Your app isn’t known to many people

• Your app is expensive

• In most cases, it’s the former. Do your marketing.


App Store Marketing

• Getting downloads on App Store is different from getting visitors to your website

• Most downloads are through word of mouth

• Analytics won’t help for the most part

• Think again, how did you come to know about Whatsapp or Instagram?

• Customers are your marketers

• Review sites (the big ones) can help, but not that much (Think Color)

• No SEO


Launch

• Launching the app

• Soft launch

• Hard launch


Soft Launch

• Most websites use Soft Launch

• Totally won’t work for Apps

• Why?


App Store Algorithm

• Favors

• Apps that are recently submitted/published

• Apps that are updated often

• Apps with higher number of positive reviews

• App enters New and Noteworthy or Featured section


New and Noteworthy

• Your app should be NEW

• Your app should have a considerable number of downloads


Featured

• No loophole

• Apple tends to feature apps that are “New and Noteworthy” and looks beautifully done

• Lots of animations and good looking UI


Featured

• Apple also features apps that use a “cool hardware or OS feature” during the honeymoon period.

• Apps with push notifications

• Apps for Passbook.


Featured

• Unlike most other App Stores, you can’t “talk” to someone at Apple to get featured.

• If someone (a marketer) promises to get your app featured, ignore him


App Store Front Pages

• Featured section - You are already successful

• Chillax and sip that pina colada


App Store Front Pages

• New and note worthy section

• Very important for startups (Free apps)

• Usually apps stay here for 30-50+ days

• Improves your “Word of mouth” marketing


Hard Launch

• Apps should always use Hard Launch

• Easier to get into “New and Noteworthy” section

• Easier to get into “Top 10” Free/Paid apps section

• All because your app is new and gets traction


Hard Launch

• Wait, but my app is still not ready yet

• Yes, continue iterating. No choice

• If your investors are pushing hard, do a soft launch

• But when you are ready, submit a new app and do a hard launch (v2)

• Submitting new app means, your old users will not get an update. But that’s ok.


Rejections


App Rejections

• App crashes at launch

• App doesn’t work as advertised

• Server was down when Apple was testing

• App uses private API


App Rejections

• Analyze your crash reports and fix the issue

• On launch crashes are mostly dynamic load errors

• Your developer would immediately know why.

• When your app doesn’t work as advertised, Apple will sometimes as you to fix the description (Metadata update)

• This is not always a rejection.

• Private API - You normally get a clear email from Apple what private API you tried to use.


Updates


Updates

• Update your app regularly

• Keep your users delighted

• Remember, Apple is the most customer friendly company. If Apple iDevice users are happy, Apple will be happy.

• Aim to submit one update every week for the first three months and one update every fortnight there after.


Open vs closed debate

• Yes, Apple is closed and Web is open

• Bitching around is not going to help your business or make you rich

• …unless you are a journalist

• Think, what’s next.

• Win the Apple way


Questions?


Thanks@mugunthkumar

[email protected]

iostraining.sg

Available for consulting services and in-house

training

iOS App Development API DesignMobile UX


mailto:[email protected]






Documents

App store economics